Application of control mechanisms on marketing decisions in multinational company marketing units in Malaysia

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Date
2006
Authors
Low, Chee Kong
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Abstract
Research in international subsidiary management has made significant advances in understanding the cross-border control mechanisms. However there is very limited research done on issues related to marketing related control mechanisms. Using a questionnaire survey, this study investigates the types and level of control mechanisms used specifically on marketing-related decisions, and examines the determinants and moderating factors of the mechanisms. From the responses of 96 local marketing units of multinational companies operating in Malaysia, four types of control mechanisms on marketing decisions are identified, namely direct value control, direct support control, control by socialization and networks and output control. Control by socialization and network is found to be used most extensively in marketing decisions. Among marketing mix elements, product decisions received the highest level of control. Factors influencing the choice and the level of control mechanisms include organization model, the size of local marketing unit, and interdependence between local unit and headquarters. The relationship between the determinants and control mechanisms are found to be moderated by environmental complexity and target market.
Description
PhD
Keywords
Management , Marketing decisions , Multinational company
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